The Lands Department announced on 27 April that the tender for the Fanling Sheung Shui Town Lot No. 279 at Area 25, Kwu Tung, New Territories, was awarded to the highest tenderer. Asset Capital Limited (parent company: Sun Hung Kai Properties Limited), provided the successful response with a consideration price of HK$8.614 billion, which was 44% higher than market expectation.
|Property||Kwu Tung Area 25|
|Lot Number||Fanling Sheung Shui Town Lot No. 279 (FSSTL 279)|
|Zoning||Other Specified Uses (Commercial/Residential Development with Public Transport Interchange)|
|User||Non-industrial (excluding godown, hotel and petrol filling station purposes)|
|Site Area||199,855 sq. ft. (18,567 sq m)|
|Maximum GFA||1,199,131 sq. ft. (111,402 sq m)|
|Maximum Plot Ratio||6.00|
|Tender Award Date||27 April 2021|
|Transacted Price||HK$8.614 billion
(AV: HK$7,184/sq. ft.)
This inflated price demonstrates the developer’s confidence in Hong Kong’s economic recovery and the prospects for Kwu Tung. Since Kwu Tung Area 25 was the first site in Kwu Tung sold by the Government, it will become a benchmark for consideration against upcoming land sales. This will be put into practice for the two upcoming sites of Area 24 (FSSTL 278) and Junction of Fan Kam Road and Castle Peak Road (Lot 4076 in DD 91) that will be released in the April to June 2021 Land Sale Programme.
Kwu Tung Area 25 falls in the middle of the Kwu Tung North New Development Area which spans a total of 447 hectares and is proposed to be developed as a “Mixed Development Node” as per the Development Bureau. The MTR Northern Link (Kwu Tung Station) is expected to be completed in 2027 and will be in proximity to the site.
There are major recent residential developments in Kwu Tung namely, Eden Manor and Valais. Their prevailing residential unit rates range from HK$15,000/sq. ft. to HK$20,000/sq. ft. (SA). The residential price in Kwu Tung has experienced an upward trend in the past five years.
Thanks to Kwu Tung’s proximity to Lok Ma Chau and Lo Wu, the completed development will attract households and individuals who travel frequently between Mainland China and Hong Kong. Upon completion of the development, the residential sale price has the potential to reach up to HK$22,000/ sq. ft. (SA) upon completion.